LETTINGS & MANAGEMENT

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1 LETTINGS & MANAGEMENT Terms of Business Address of Property to be Let:.. Post code: sales lettings auctions management commercial surveyors

2 TERMS OF BUSINESS Drivers & Norris agree to market the property if the following conditions have been met: SUB-LETTING If you are a tenant or a lessee it is a legal requirement that (1) The intended furnished/unfurnished let is permitted by your current regulated lease agreement. (2) That the intended furnished/unfurnished letting is for a period expiring at least one month prior to the termination of your current regulated lease agreement. (3) That your current landlord s written permission has been or will be obtained prior to the start of any assured shorthold tenancy agreement. MORTGAGES Where a property to be let is subject to a mortgage we require that you confirm to us in writing that you have obtained the mortgagee s permission to let the property on an assured shorthold tenancy. Please note that applying for permission after a tenancy agreement has started may prejudice the tenancy agreement. INSURANCES You must ensure that the building and contents insurance cover is adequate and that the policy also covers furnished lettings. Drivers and Norris will not be held liable for any difficulties arising as a result of failure to adequately insure the property. TERMS OF MANAGEMENT APPOINTMENT Except in cases where you intend to re-occupy the property and where special arrangements have been made, our appointment is for the complete term that any tenant/tenants or change of sharers made by addendum to the assured shorthold tenancy agreement, and introduced by us, occupy the property. We require sufficient funds at the commencement and, if necessary, during the complete term of the management period, to enable us to meet all expenditure prior to any future rent collection. It is advisable that we hold a reasonable working balance on account as we will not agree to meet any outgoings beyond the available balance currently held at any time on your account. Our fees plus VAT at the standard current rate of 20% and any other outgoings will be deducted from the rent where possible. Should the rent be insufficient to cover any total expenditure including our fees, we will require cleared funds before the end the previous month. TENANCY CHANGES In the event of there being a change of tenancy during our management wherever possible we deal with the preparation of the property for the new tenant. Any expenses arising from this process and not mutually agreed as dilapidations from the tenant s deposit will be passed to the landlord for settlement.

3 CHANGE OF OWNERSHIP In the event of the property being sold or passed on with the benefit of the tenancy, Drivers & Norris will look to the original landlord of the property for the letting commission due for the introduction of the tenant for however long the tenancy agreement lasts, whether or not subsequent extensions of the initial terms are negotiated by Drivers & Norris or their representatives or by the landlord (old or new) or by any other persons or agents. TERMINATION OF CONTRACT Three months written notice must be given if for any reason either party, landlord or agent, should wish to terminate this contract. However fees remain due for any tenancy for which Drivers & Norris has found a tenant until that tenant vacates the property. Should Drivers & Norris no longer be required to manage a property, the fees will cease to be payable after the three months notice period has expired. INDEMNITY / RATIFICATION The owner undertakes to ratify whatsoever the agents shall lawfully and reasonably do by virtue of this agreement and to indemnify them against all costs and expenses properly incurred by them in carrying out their duties and all other actions and acts pursuant hereto including any reasonable legal expenses. WITHDRAWAL Should the landlord withdraw from an agreed let to a tenant where satisfactory references have been received, the landlord agrees to pay all reasonable costs incurred by Drivers & Norris and by the prospective tenant in relation to this property. REPAIRS AND REPLACEMENT We agree to deal with day-to-day management matters including minor repairs up to a maximum of 250 excluding VAT, for any one item. Except in an emergency, wherever practical, estimates are obtained and submitted to you for approval in respect of works of redecoration, renewal or repair where they are likely to cost more than 250. INSPECTION AND DEFECTS Our management service will include investigation of defects that come to our notice or are clearly and adequately brought to our attention by the tenant/tenants. It should be understood that any such inspection can extend only to apparent and obvious defects and would not amount in any way to a structural survey of the property. We cannot accept responsibility for any hidden defects. FITTINGS AND EQUIPMENT The landlord agrees that all electrical equipment has been tested by a NICEC qualified engineer and all gas appliances must be tested by a GAS SAFE registered plumber to ensure that they comply with all current safety regulations. Any soft furnishing must comply with the Fire and Furnishings (Safety regulations) 1988 (1993) and must have the appropriate safety labels attached. If, on commencement of the tenancy there is any furniture that does not comply with these regulations or there are any certificates outstanding it may jeopardise the tenancy and we reserve the right to immediately cancel this agreement. All properties must have Smoke alarms on every floor and corbon monoxide alarms where there are solid fuel heaters.

4 UTILITY COMPANIES When the property is let gas and electricity will be provided, or will be in the process of being provided by Spark Energy Supply Limited ( Spark Energy ). However this will not prevent the Landlord from changing to a different energy provider if desired. The Landlord agrees that the letting agent may pass the Landlord s name and contact details to Spark Energy for the purposes of: a. registering the gas and electricity meters at the property in the Landlord name with Spark Energy, providing gas and electricity to the Landlord and administering the Landlord s account with Spark Energy; b. registering the Landlord with the relevant local authority for the payment of council tax; and c. registering the Landlord with the incumbent water supplier to the property. The water supplier may contact the Tenant in order to provide further information about its services and products and conclude an agreement with the Tenant for those services and products. d. Registering the telephone land line installed at the property [with the relevant telephone line provider] Spark Energy will use the Landlord s details only for the purposes set out above and not in any other way. Spark Energy will comply with its obligations as a data controller in the Data Protection Act 1998 and will handle Landlord s data in the manner set out in Spark Energy s standard terms and conditions and/or privacy notice. If the Landlord has any questions regarding details or use of the Landlord s data held by Spark Energy, the Landlord may contact Spark Energy at Ettrick Riverside, Dunsdale Road, Selkirk TD7 5EB or or CLEANING The landlord agrees to and will pay for a professional clean of the property before the start of any tenancy. The tenant agrees to and will pay for a professional clean of the property at the end of the tenancy. INVENTORIES AND SCHEDULE OF CONDITION Drivers & Norris will arrange for a full inventory and schedule of condition (including photographs) of your property to be undertaken by an independent inventory company (the cost of this to be borne by the tenant/tenants) at the start and end of the tenancy. The agent will return the deposit to the tenants if we consider the condition to be reasonable. Should the landlord wish to inspect the property it must be done within 5 working days unless another tenant has taken possession. If the landlord has not inspected the property after the tenants have vacated, our suggestions on any dilapidations will be final. VOID PERIODS Our management function does not include the supervision of the property for the period for which it is not let, although in the course of finding you a tenant, periodic visits may be made to the accommodation by our letting staff. We cannot pay bills on your behalf or instruct contractors unless part of a refurbishment program.

5 TENANTS BREACHES You will be informed of any rent arrears or breaches of covenant brought to our attention. However, if it becomes necessary to take legal action, you will be responsible for instructing your own Solicitor and for all fees arising, if you have no legal protection insurance. If we are required to attend court on your behalf there will be a charge of per day or part thereof plus VAT at the prevailing rate of 20%. However we will be on hand to assist and supply any information required. We suggest that you take out Legal Protection Insurance. TAXES MANAGEMENT ACT Where the landlord of a furnished/unfurnished property resides abroad, the Commissioners for Inland Revenue will hold us, as your agents, responsible for the payment of any tax liability which arises on rents collected by us on your behalf. Accordingly, if you are resident abroad it will be necessary for us to deduct income tax at the basic rate and hold the amount so deducted to your credit until the taxation liability has been agreed with the Inspector of Taxes. Similarly, if you currently live within the UK but subsequently move abroad, it will be necessary for us to commence this deduction from the date you leave the UK. The monies deducted will be held in our clients account. The eventual liability for tax may be considerably less than the amount we have retained and we suggest that you employ an accountant or other tax advisers to agree your assessment each year with the Inspector of Taxes. When this has been settled we are then in a position to account to you for any surplus we may have been deducted for that tax year. COURTS AND TRIBUNALS Applications for fair rent or appearances before the Rent Officer, Rent Assessment Committee or any other Court or Tribunal will be by special arrangement only and will form the subject of an additional charge. LANDLORD AND TENANT ACT 1987 We are obliged to include your full name and address on all rent demands. If your address is outside England and Wales, then we must provide the tenant with an address within England and Wales to which notices (including notices in proceedings) may be served to you. Unless otherwise instructed, if your address is outside England and Wales, we will use the address of our administration office for this purpose. Although we will attempt to forward any notices to you promptly, we cannot accept liability for any loss or damage incurred either directly or indirectly from our actions. COLLECTION OF RENT If you instruct us to collect rent from the tenant/tenants on your behalf, this will be done where possible by use of a standing order mandate unless you instruct us to the contrary in writing. This ensures prompt collection of rent and cleared funds will be transmitted automatically into our account. However, you are advised that by accepting rental payment by standing order (which can only be terminated by the tenant), should the tenant breach any of the terms of the tenancy agreement whereby you seek forfeiture of the tenancy and repossession of the premises, the continued payment of rent by the tenant under the standing order mandate may be deemed to be a waiver by you of the tenant s breach and your remedy of forfeiture may be lost.

6 DEPOSITS Drivers & Norris will hold the tenant s deposit as stakeholders unless otherwise specified and agreed. As Stakeholders the deposit will not be released until one party or the other becomes entitled to it by express consent either the landlord or to the tenant as they consider due and reasonable. No interest will be paid to either party. The deposit will be held and registered under the terms of the Tenancy Deposit Scheme or any other similar regulated scheme the details of which can be provided on request. There is a deposit registration fee of excluding VAT at the current rate of 20% which will be added to the first rent statement or invoice. The Deposit will be held in one of the following accounts: National Westminster Bank Plc, 490 Holloway Road, London N7 6HN. Sort Code: Drivers & Norris Client Account number and CONTRACT The landlord grants permission to the agent (Drivers & Norris) to sign the assured shorthold tenancy agreement on the landlord s behalf. The landlord will be bound by all of the terms and conditions contained with the tenancy agreement. Heads of terms will be provided to the landlord prior to creating any agreement including landlord and tenant details, length of agreement, rental amount and notice period to vacate where required. LET ONLY SERVICE Advise the landlord on how to achieve the best rent and on any compliance issues Arrange for Photographs, floorplans and EPC and commence marketing on various applicable Web Portals Erect a To Let Board Help arrange for a Gas Safety Certificate if applicable (there is an additional cost for this) Accompany viewings Finding and referencing suitable tenants Draw up a legally binding Assured Shorthold Tenancy agreement Provide the tenants with a method of payment Collect and Remit the initial payment Register the deposit on behalf of the landlord with the TDS Serve the S21 notice to vacate LETTING AND RENT COLLECTION SERVICE All of Lettings Service plus: Arrange the check in and check out inventory Arrange a Gas Safety Certificate if applicable (there is an additional cost to this) Meet and check in the tenant Advise all utility companies of changes Collect and receive the monthly rent and account to the client monthly Pursue any non-payment of rent on the telephone or by post and provide advice on any rent arrears action Issue monthly statements

7 LETTING AND FULLY MANAGED SERVICE All of Lettings and rent Collection plus: Arrange all routine safety inspections on check in Undertake three property inspections per annum Hold keys to the property throughout the term of the tenancy Arrange and supervise routine repairs using approved contractors Account to the client monthly deducting any agreed costs Negotiate the return of the deposit in line with TDS regulations Advise on any Non Resident Landlord tax status and on HMRC (if applicable.) 4) RENEWING THE TENANCY AGREEMENT Should the property be re-let to any existing tenants current at the time of the re-let, or remaining tenants for a further term, the rent will be reviewed in line with current market trends and a new tenancy agreement or addendum may be created. OUR FEES (1) Letting fee 8.0 % of the annual rent (plus vat) (2) Letting and Rent Collection service 10% of each months rental (plus vat) (3) Letting and Full Management 12% of the monthly rent (plus vat) Fees under (2) & (3) above are based on a 12 month rental and should Drivers & Norris not be instructed to collect rent or manage the property for the whole period for whatever the reason, the whole fee will become due immediately. Additional landlord fees in regard to 2 and 3 above: As fees under 2 and 3 above are taken monthly there is a Setup Fee of : 200 plus vat Inventory Fee: Dependent on the number of bedrooms and/or size of the property, between 130 and 250 plus vat Fire and Carbon Monoxide Alarms: (where applicable) We will fit these if not already fitted at a cost of (plus vat) each Rent Review Fee: 3% of the annual rent (plus vat). Review rent in accordance with the current prevailing market condition and advise the landlord accordingly. Negotiate with the tenant. Update the tenancy agreement or Serve Section 13 Notice if the tenancy is periodic Court Attendance: 200 (plus vat) per hour Insurance Claims: 10% (plus vat) of the total claim Major Works: 15% (plus vat) of any major works if works exceed 5000 Management Services: when instructed on a let only basis 150 per hour (plus vat) Tenancy Deposit Claims handling: 100 (plus vat) Complaints and Money Protection Please note that all fees quoted are plus VAT at the current rate of 20% Drivers & Norris is a member of Ombudsman Services property redress scheme for dealing with complaints. Drivers & Norris is a firm regulated by the Royal Institution of Chartered Surveyors (RICS) and our annual regulatory review fee covers the Clients Money Protection Scheme. Clients Monies: All our Clients Monies are held in a nominated client account at National Westminster Bank, Holloway Road Branch, London,

8 Landlords Name(s): Correspondence Address: Telephone Number: address: I/we hereby appoint Drivers & Norris Limited to act as my/our agent and to undertake all subsequent let of the above property for the duration of the tenancy including any renewal of the tenancy agreement on the terms and conditions contained within the agency agreement, and to receive rents and to account to me/my bank after deductions of outgoings and management expenses. I/We instruct Drivers & Norris to arrange the following on my/our behalf: PLEASE CIRCLE Energy Performance Certificate: Gas Safety Certificate: NICEIC Certificate: Name of Bank/Building Society: Account in name(s) of: Sort Code: Account number: I/we confirm that I/we are the legal and equitable owner(s) of the property and agree to be bound by the provisions contained within this contract and certify that I/we fully understand its contents. 1) Signed: 2) Signed 1) Print: 2) Print: 1) Date: 2) Date: LANDLORD COPY

9 Landlords Name(s): Correspondence Address: Telephone Number: address: I/we hereby appoint Drivers & Norris Limited to act as my/our agent and to undertake all subsequent let of the above property for the duration of the tenancy including any renewal of the tenancy agreement on the terms and conditions contained within the agency agreement, and to receive rents and to account to me/my bank after deductions of outgoings and management expenses. I/We instruct Drivers & Norris to arrange the following on my/our behalf: PLEASE CIRCLE Energy Performance Certificate: Gas Safety Certificate: NICEIC Certificate: Name of Bank/Building Society: Account in name(s) of: Sort Code: Account number: I/we confirm that I/we are the legal and equitable owner(s) of the property and agree to be bound by the provisions contained within this contract and certify that I/we fully understand its contents. 1) Signed: 2) Signed 1) Print: 2) Print: 1) ) Date: 2) Date: Agent COPY

10 Important information for tenants Stop cock location:. Central heating manual/instructions? Yes / No Make and model?.... Washing machine manual/instructions: Yes / No Make and model?.... Rubbish collection date? / / Other instructions which will aid your new tenants?

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